Corn and especially soybeans faced pressure after USDA’s higher-than-expected Sept. 1 grain stocks estimates yesterday, but corn is currently trading fractionally to a penny higher and soybeans are 1 to 3 cents lower and holding within the lower end of yesterday’s trading range. Production and stocks data for wheat favored market bulls, and winter and spring futures extended gains overnight, with most contracts 9 to 11 cents higher. Crude oil futures and the U.S. dollar index are slightly lower.
Welcome rain fell overnight for HRW wheat producing areas and more is expected through Saturday from the Texas and Oklahoma Panhandles through eastern crop areas of Kansas and Oklahoma, reports World Weather Inc. The weather watchers said the rain “will further raise topsoil moisture.”
Analysts surveyed by Bloomberg expect USDA to report 422.0 million bu. of corn was used for ethanol production during August, which would be a 2.7% improvement from August 2020, but a 6.0% decline from July’s 449.1 million bu. corn use for ethanol.
India’s palm oil imports hit a record 1.4 MMT in September as buyers took advantage of newly lowered duties to stock up ahead of key festivals.
Euro-zone inflation hit its highest level in 13 years as energy prices soar. Headline inflation came in at 3.4% last month, according to preliminary data from Europe’s statistics office. This was the highest level since September 2008.
President Joe Biden on Thursday signed a stopgap bill that will keep the government funded through Dec. 3, at which point Congress will need to issue another Continuing Resolution to fund the remainder of the fiscal year.
House Speaker Nancy Pelosi (D-Calif.) canceled a vote late Thursday on Biden’s bipartisan infrastructure (BIF) bill amid deep Democratic infighting. Democrats reportedly might scale back their social safety net and climate change bill.
In an interview with Politico this week, U.S. Trade Representative Katherine Tai said the Biden administration wants to “build” on the existing tariffs imposed by the Trump administration and confront China for failing to live up to terms of the Phase 1 agreement between the two countries.
During the first eight months of 2021, China imported 83,000 MT of beef from the U.S., a ninefold increase from last year at this time, according to Chinese customs data. The U.S. surpassed Australia as the top exporter of grain-fed beef to China with China limiting purchases from the latter due to political tensions.
Cattle futures came under heavy pressure Thursday, with feeders leading losses and December live cattle settling at their lowest level since early May. Boxed beef values continue to slide and this week’s cash cattle action extended the sideways to lower trend.
Lean hog futures extended their rally after pausing midweek, with futures gapping to the upside and settling high range and not far off the July highs. A move above those levels would set the stage for a test of tough resistance at the June contract highs.